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IoT Annual Spending to Reach $1.2 Trillion by 2022

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Internet of Things (IoT) spending will experience a compound annual growth rate (CAGR) of 13.6 percent over the 2017-2022 period and reach $1.2 trillion in 2022, IDC now predicts. And among the segments with greatest growth will be vehicle use cases.
From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29 percent CAGR) over the forecast period, followed by traffic management and connected vehicle security, according to IDC.
The consumer sector will lead IoT spending growth with a worldwide CAGR of 19 percent, followed closely by the insurance and healthcare provider industries, IDC predicts.
Manufacturing and transportation will each exceed $150 billion in spending in 2022, making these the two largest industries for IoT spending.
source: IDC Almost by definition, the greatest mobile operator opportunities in the broad internet of things area are those use cases requiring mobility, as …

Where is the Edge, for Computing?

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Edge computing is a subject of enormous interest for mobile service providers, some internet service providers and telcos, cloud computing and data center operators as well as suppliers of enterprise software and devices, as edge computing could create substantial new markets for communications, solutions and computing facilities.
Of course, we have to define “edge,” and the answer might be application dependent. In some cases, such as an industrial sensor that aims to aid decisions about when a particular piece of machinery is dangerously hot, and has to be shut down, to prevent damage, the edge is the device itself.
In that case, communications is not essential. The device must act autonomously, on its own.
In other cases, the edge might be someplace on the enterprise premises. In such cases, enterprise servers handle the processing load, and there is no need for wide area communications.
source: Industrial IoT Consortium

The sweet spot for remote edge computing starts with use cases …

How Big is UCaaS Going to Be?

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I realize I am a skeptic about claims that unified communications “as a service”  is a “young” or especially fast-growing segment of the industry.
I do not see UCaaS as especially young. Keep in mind that suppliers have been touting and selling hosted communications solutions for two decades, and UCaaS still is purchased by less than 18 percent of U.S. businesses, for example, even using generous definitions.
By most estimates, actual UCaaS revenue is growing rather slowly. In its historically fastest-growing market (North America), UCaaS is growing about four percent annually, according to Transparency Market Research, although some forecasters believe license growth will be higher.
UCaaS growth rates of 10 percent are seen as realistic, some forecasters believe, a growth rate with some historical precedent.
That is not to deny the possibility of a step change in adoption; an inflection point where growth accelerates. If you consider UCaaS an information technology innovation similar…

Use of Facebook to Get News is Falling

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Use of Facebook for news has been falling since 2016 in many countries, according to the latest Reuters Digital News Report.
At the same time, more people have been using messaging apps such as WhatsApp to get news content, more than doubling to  in four years.


The point is that leadership in the internet ecosystem is not permanent.

Build or Buy Content Assets?

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Netflix likely has proven that a streaming service does need to create original content to achieve market leadership, but also suggests such a firm does not need to own a separate content creation company to do so. Apple’s recent decision to acquire the services of Oprah Winfrey might also validate the principle.
Does that mean that Comcast, Verizon and AT&T (or other connectivity services providers) could do the same? That cannot be determined, as each has acquired content creation firms.
But there are other reasons why Comcast, AT&T and Verizon have done so. Ownership of content assets, at scale, creates the foundation for advertising revenue streams, wholesale content revenue streams and some retail bundling opportunities as well.
That matters as content creation and aggregation might represent as much as 70 percent of the total value of the TV content ecosystem, with distribution representing about 30 percent.
In other emerging ecosystems requiring distribution and connecti…

Except for Asia, Africa, Mobile Phone Business has Saturated

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If you want to know why mobile service providers are so interested in internet of things, this graph suggests a key reason: sales of services and products to human beings using mobile phones is near saturation, and actually went to negative growth rates on two continents in the first quarter of 2018.
On other continents, growth rates were in low single digits. Africa and Asia are the two continents where double-digit growth continues to happen.






















source: Ericsson
Projections of potential IoT connectivity revenue also suggest why many tier-one service providers will be looking beyond connectivity, at other parts of the ecosystem, for new revenue and roles. Simply put, most IoT connections will not use the mobile networks.
Though mobile internet of things connectivity will grow fast, most of the connections will use some other form of connectivity, a couple of new forecasts suggest. However, by about 2023, mobile connections might take leadership, in terms of new sales.
That should provide …

Is Verizon Strategy Built on 5G Connectivity Revenues?

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With the exception of its buying Vodafone’s interest in Verizon Wireless for $130 billion, most of Verizon’s acquisitions have been far smaller. The overall pattern might indicate that Verizon spends most of its acquisition funds on network assets.
So it probably is not surprising that the choice of Hans Vestberg as the next Verizon CEO suggests to most observers an investment priority on 5G assets, not content or other “up the stack” assets, or even operating efficiencies.
Some of us would not necessarily agree with that view. It is true that Verizon sees itself as the leader in network quality and a first mover where it comes to each next generation network. Iin its acquisition strategies, Verizon has emphasized connectivity assets.
The issue is whether the choice of Vestberg suggests Verizon will focus its revenue growth plans on connectivity services, or has something else in mind. Some of us would argue that Verizon has something else in mind.
Verizon has for some time been acqui…